Mich. Comp. Laws § 500.8141: Value of security; determination; supervision and control; crediting amount determined; deficiency treated as unsecured claim; surrender of security to liquidator.

Sec. 8141.

The value of security held by a secured creditor shall be determined in 1 of the following ways, as the court may direct:

By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to the creditors.

By agreement, arbitration, compromise, or litigation between the creditor and the liquidator.

The determination shall be under the court's supervision and control with due regard for the liquidator's recommendation. The amount determined shall be credited upon the secured claim and any deficiency shall be treated as an unsecured claim. If the claimant surrenders his or her security to the liquidator, the entire claim shall be allowed as if unsecured.